Investment firm Piper Sandler has rated Nasdaq-listed Coinbase's (COIN) stock at “overweight,” saying the cryptocurrency exchange company is still set to be a leader in the fast-growing crypto industry.
- Piper Sandler analyst Richard Repetto initiated coverage of COIN on Friday, and in a note to clients, he wrote that the exchange has continued to expand its market share, despite the industry's dramatic growth, according to a CNBC report.
- “In our view, COIN is the most scaled play in the crypto space, an asset class that has the potential, in our view, to reshape financial services and the technology underpinning it,” Repetto said, according to CNBC.
- The analyst set a price target of $335 for COIN; at the time of publication Friday, the stock was trading up 0.16% at $265.52.
- “As COIN continues to grow its assets on platform and verified users count through (1) further adoption of crypto by the public and (2) increased market share, we believe Coinbase’s revenue potential has increased in optimal operating environments and raised their operating floor in subdued, non-volatile, markets,” Repetto aid.
- The rating comes a day after the exchange boosted its forecast range for active users in 2021 while reporting first-quarter results that matched its previous estimate.
- Coinbase’s shares started trading last month on the Nasdaq in a direct listing. The stock opened at $381 and shot up to almost $430 during its first day.